Sunday, May 19, 2013

Welch: Setting the record straight on ABF attempt

YRC Worldwide Inc. CEO James Welch wants to set the record straight on the company’s attempt to acquire ABF Freight System Inc.

On Thursday, Welch sent a letter to all of the Overland Park less-than-truckload carrier’s employees explaining the company’s thinking behind the attempted acquisition of the Fort Smith, Ark. based company, his thoughts on the “leak” and media reactions to the acquisition, and his reaction to the International Brotherhood of Teamsters statement, which called the company’s behavior arrogant and “unconscionable.”

Welch opened the letter by explaining that the company, its board of directors and executives have a fiduciary duty to grow profits and increase shareholder value, and because of that they “spend a lot of time discussing strategic options” that can strengthen YRC.

He then said he met with Arkansas Best CEO Judy McReynolds for a total of one hour on March 22, sent a follow up letter to McReynolds on March 25, and received a letter rejecting the offer on April 1.  Full Story......

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